Ripples From Oil Rout Have Yet to Be Fully Felt

So far, few outside the energy sector have been hurt by this year’s oil rout. But the ripples likely have only begun to be felt. Michael Casey joins MoneyBeat. Photo: Getty.

This transcript has been automatically generated and may not be 100% accurate.

most observers say that the drop in crude oil prices ... on balance of good paying ... the reality is that in our Antartic and enter connected markets nothing is confined to its own corner of the world that is where we are beginning to ... Horizons columnist Michael Casey is here to explore that angle ... Mr Casey hell are you gonna do very well fall onto your column today and I think is a good plan to confront of losing this point ... they look in oil and it's a well oiled down ... of more money consumer pockets must be good but I think on some sometimes I think ... economics is done it out of it is it's it's actually impossible to do full net with price deck of the analysis one Alenia basis right so they calculate ... all of the positive effects to come from low-cost was no doubt that ... historically ... low oil prices have had a positive influence on the economy ... it did drugs I was is and isn't everything but ultimately that that that that that's a reasonable conclusion tonight ... the issues the wood scraps to describe what happened in the oil market is mixed trading at two one percent now to get Laporta said Wednesday that this is a very big movie that I believe the most important commodity in the world said ... the ramifications of that a few tries to oversee cut the oil produces minute of the frock is and how to do the cutter into problems ... when we know that that the Although produces lots of that will have problems ... we know that indices in commodities may well be called the wrong side of this that sometimes ... we know that lives sovereign nations of the problems Russia Venezuela of this ... how does this all had a problem that we pull out all the little more about investors and some of those leveraged oil companies private intelligence actually added say it is also so ways in which you can be exposed to losses in this ... and that the concert probably just the speed of the full them as much as the magnitude of it because ... in the IQ we a Jack Ablin coated with my piece that of the how the economy in mock it's like a battleship they can handle trains and would not change over time what happens quickly like this it's it's hard because it is ... the more the poisoning of we did Resnick all the bits with siding is ... there are times in the year he him talk uncomfortable parallels with money seven ninety eight ... back in oils flowing Russia was in trouble back then ... I'll we headed in the G ma kitted currency war time playing out we had the dollar in this this and instead ... cited ... and back then people to the devaluation that I've bought is being this an isolated event ... the move did they know that unit within eighteen months Moelis mistletoe lose dominance fully than it appears to have been one of the sauna and that is the classic example of the unintended on plant and circumstance but ... because the the the marquee event is long-term capital management with the hedge fund that is in everything gets itself totally overleveraged ... direct and to take down the pace of global economy and is this use this this and that now is the key point in the sky dancer importantly make sure that in it ... this is not minus seven I had a key reasons why you need that sort of Sanaa Rio went by I wouldn't have ... been necessarily the same sorts of hedge funds ... as the years that the debt that was silly to have central banks with ... big extent but they had that been with the targets for spectators to go up a ... lot of isn't that about the extent of their lives is the isthe buff up ... it than to be cleaned up the Nevada because of the mix we had sixty votes that is not quite the same risk buildup in the system but the Macy's is still a sign was that ... unforeseen said his earlier another but there are other issues brought the nineties and the booming global economy right we are not in a bull absolutely not fragility associated with the right ... idea or visit costs we do note about the distortions the mock it's on us to the tothe fact that Ethiopia that became the ports country fair bet that at its natural bond markets was able to do so lousy that came in on it to six point six percent ... and the Portugal ... spying mainly I did the deals now at record lows the same bonds that is too yellow usability of love to ... look like that to ... say to these things look like distortions we know what causes distortions in the enormous amount of money from liquidity and use by the big essential facts of the well ... it is a lot of reasons to be careful and Porsches about how something like a price shock of this magnitude oil could plan a very disruptive what time that the lithium is Casey think you're an argument